Introduction to Employment Tribunal Costs
Introduction to Employment Tribunal Costs
An employment tribunal is an independent legal body that resolves disputes between employees and employers over issues such as unfair dismissal, discrimination, or unpaid wages. Understanding the costs involved in taking or defending a case at an employment tribunal is crucial, whether you are an employee considering making a claim or an employer preparing to respond. Knowing what expenses you might face – and how costs are handled – can help you make informed decisions and avoid unexpected surprises.
Why Costs Matter in Employment Tribunal Cases
Unlike many other courts, employment tribunals generally do not require claimants or respondents to pay an upfront fee to start or defend a claim. However, there are still a range of potential costs to be aware of. These can include legal representation fees, expenses for witnesses, and the cost of gathering evidence. In some circumstances, the tribunal may order one party to pay the other’s costs, especially if a claim is found to be unreasonable or vexatious.
It’s important to note that while most parties represent themselves, some choose to hire solicitors or barristers, which can significantly increase overall expenses. In addition, you may need to cover travel costs, loss of earnings for attending the hearing, or fees for expert witnesses if your case requires specialist input.
Types of Costs You Might Encounter
- Legal representation: If you hire a solicitor or barrister, you’ll need to pay their fees. This is usually the largest expense in tribunal cases.
- Expert and witness expenses: If your case needs expert evidence or you require witnesses to attend, you may need to cover their travel, accommodation, or loss of earnings.
- Document preparation: There may be costs associated with copying and preparing documents for the tribunal.
- Potential costs orders: Although rare, tribunals can order a party to pay the other side’s costs if they have acted unreasonably.
For a comprehensive overview of how employment tribunals operate, including their role and the types of claims they handle, you can consult the official Employment Tribunals Guidance.
Where to Learn More
This page is part of a broader guide on Employment Tribunals, which covers everything from how to start a claim to what happens at a hearing. If you’re unsure whether an employment tribunal is the right route for your situation, you may also find it helpful to read about When and How to Use Employment Tribunals, which explains alternative dispute resolution procedures and when a tribunal might be appropriate.
Understanding the potential costs involved is just one aspect of preparing for an employment tribunal. Exploring the wider context can help you make the best choices for your circumstances and avoid unnecessary expenses.
Who Pays Employment Tribunal Costs?
When it comes to employment tribunal costs in the UK, a common question is who is responsible for paying them. Generally, each party – whether you are the claimant (the person bringing the claim) or the respondent (usually the employer defending the claim) – is expected to cover their own legal costs and expenses. This is different from many other types of court cases, where the losing side often pays the winner’s legal costs.
Who usually pays?
In most employment tribunal cases, both sides pay their own costs, regardless of who wins or loses. This includes fees for legal advice, representation, and any other related expenses. The principle behind this rule is to make the tribunal process more accessible, so that the risk of high legal bills does not discourage people from bringing or defending claims.
When might costs be awarded to one side?
Although it is rare, an employment tribunal does have the power to order one party to pay some or all of the other side’s costs. This usually only happens in specific circumstances, such as:
- If a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably during the proceedings.
- If a claim or response had no reasonable prospect of success.
- If a party has not complied with tribunal orders or rules.
For example, if an employer defends a case in a way that wastes the tribunal’s time or a claimant brings a claim with no genuine basis, the tribunal might order that party to pay some of the other side’s legal costs. However, these awards are not automatic and are at the discretion of the tribunal.
How do tribunals decide on costs?
The tribunal will consider all the circumstances of the case before making a costs order. Factors include the behaviour of both parties, whether either side has ignored tribunal directions, and if either party has made unreasonable claims or defences. Costs can be capped or limited, and the tribunal may require detailed evidence of the costs incurred.
Practical tips
- Always act reasonably and follow tribunal directions carefully to avoid the risk of a costs order against you.
- If you are concerned about the possibility of paying the other side’s costs, seek advice before starting or defending a claim.
- Keep records of your expenses and any communications with the other party, as these can be important if costs become an issue.
For those considering an appeal after a tribunal decision, it’s important to note that costs rules can differ at the appeal stage. You can learn more about this in the section on costs and fees associated with tribunal appeals.
Understanding who pays employment tribunal costs can help you make informed decisions about whether to proceed with a claim or defence, and how to manage your case effectively.
Types of Costs in Employment Tribunals
When considering an employment tribunal case in the UK, it’s important to understand the different types of costs you might encounter. Here’s a breakdown of the main expenses involved, along with practical advice to help you plan ahead.
Tribunal Fees
Since July 2017, there are no upfront tribunal fees required to start or respond to an employment tribunal claim. This change, brought about by a Supreme Court ruling, means that claimants and respondents do not need to pay a fee to have their case heard. However, while this removes a significant barrier, other costs can still arise during the tribunal process.
Legal Fees
One of the most significant costs can be legal representation. You are not required to have a solicitor or barrister to represent you at an employment tribunal, but many people choose to do so for expert advice and support. Legal fees can vary widely, depending on the complexity of your case and the experience of your representative. Some solicitors may offer a fixed fee, hourly rate, or a “no win, no fee” arrangement, but always check the terms carefully before agreeing.
If you represent yourself (known as being a “litigant in person”), you can avoid legal fees, but you will need to invest time in preparing your case, understanding tribunal procedures, and presenting your evidence.
Expert Reports and Witness Expenses
In some cases, it may be necessary to obtain expert reports – for example, medical evidence in a discrimination or unfair dismissal claim. The cost of obtaining such reports will depend on the expert’s fees and the nature of the evidence required. If you call witnesses to support your case, you may also need to cover their travel expenses or compensate them for lost earnings.
Other Expenses
Besides legal and expert fees, there are several other practical expenses to consider:
- Travel costs: Attending tribunal hearings – sometimes at short notice – can involve travel and accommodation expenses, especially if the tribunal is not local.
- Document preparation: Printing and copying documents, assembling bundles of evidence, and postage can all add up, particularly in complex cases.
- Lost earnings: If you need to take time off work to attend hearings or prepare your case, you may lose income, especially if your employer does not pay for your absence.
Who Pays the Costs?
Unlike in many other courts, employment tribunals do not automatically order the losing party to pay the other side’s legal costs. Each party is generally responsible for their own expenses. However, in certain circumstances – for example, if a party has acted unreasonably or vexatiously – the tribunal can order them to pay some or all of the other side’s costs. This is rare, but it’s important to be aware of the possibility.
If you are considering appealing a tribunal decision, costs and fees may differ. To learn more about expenses related to appeals, visit Costs and Fees Associated with Tribunal Appeals.
Understanding these types of costs can help you make informed decisions about whether to proceed with an employment tribunal claim and how best to prepare for the process.
Costs If You Win or Lose Your Case
When you take a case to an employment tribunal, it’s natural to wonder what will happen to your costs if you win or lose. Unlike some other courts, employment tribunals in the UK generally expect each party to pay their own legal costs, regardless of the outcome. This means that whether you are the claimant or the respondent, you will usually be responsible for your own solicitor’s fees, expert reports, and any other related expenses.
However, there are exceptions. The tribunal has the authority to order one side to pay some or all of the other side’s costs – but this power is used sparingly. Cost orders are not automatic, even if you win your case. Instead, the tribunal will only consider making a costs order in specific circumstances, such as:
- Unreasonable behaviour: If a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably during the proceedings, the tribunal may decide that they should pay the other side’s costs.
- Weak or hopeless claims or defences: If a claim or defence had no reasonable prospect of success, and it was unreasonable to bring or defend it, costs may be awarded.
- Non-compliance with tribunal rules: Serious failures to follow the tribunal’s directions or procedures can also lead to cost orders.
For most parties, these situations are rare. It’s important to understand that cost orders are the exception, not the rule. The majority of cases conclude with each side paying their own costs. If no costs are awarded, you simply bear your own expenses, regardless of whether you’ve won or lost.
The rules governing costs in employment tribunals are set out in the Employment Tribunal Rules 2013, which explain when and how costs orders can be made. If you want to learn more about the costs involved in appealing a tribunal decision, you may find it helpful to read about the Costs and Fees Associated with Tribunal Appeals.
Understanding these rules can help you make informed decisions about pursuing or defending a claim, and whether to seek legal representation. If you’re unsure about your position or think the other side has acted unreasonably, it may be worth seeking professional advice before proceeding.
Additional Expenses to Consider
When considering an employment tribunal, it’s important to be aware that costs can go beyond legal fees and tribunal expenses. Here are some additional expenses you might face, along with practical tips to help manage them:
Time Off Work
Attending a tribunal hearing often means taking time off work. If you are still employed, you may need to use annual leave or take unpaid leave, depending on your employer’s policy. If you are no longer employed, you might need to factor in the loss of income for the days you attend the hearing or any related meetings.
Childcare and Other Care Costs
If you have children or dependants, you may need to arrange extra childcare or care support during tribunal hearings or meetings with your representative. These costs can add up, especially if hearings are scheduled during normal working hours or over several days.
Expert Witness Fees
In some cases, you or the other party may use expert witnesses to provide specialist evidence, such as medical reports or occupational assessments. Expert witnesses usually charge fees for their time and reports, and these costs are generally paid by the party who calls the expert. The tribunal will only order the other side to pay these fees in exceptional circumstances.
Travel and Accommodation
Depending on the location of the tribunal, you may have to pay for travel, parking, or even overnight accommodation if the hearing is far from home. While most tribunals are accessible by public transport, these costs can still be significant, especially for multi-day hearings.
Managing and Reducing Costs
To help manage or reduce these expenses:
- Plan ahead: Ask the tribunal for hearing dates as early as possible so you can arrange affordable travel and childcare.
- Remote hearings: Some hearings may be held by phone or video, which can save on travel and time off work. Ask the tribunal if this is possible in your case.
- Free advice services: Many charities and organisations offer free advice or representation for employment tribunal cases. Consider contacting Citizens Advice or trade unions for support.
- Legal aid: In some situations, you may be eligible for financial help with legal costs. You can check your Legal Aid Eligibility to see if you qualify for assistance with legal advice or representation.
Further Information
If you are considering appealing a tribunal decision, it’s important to understand that additional costs and fees may apply. For more details, see the section on Costs and Fees Associated with Tribunal Appeals.
By being aware of these potential expenses and exploring ways to reduce them, you can better prepare for the financial aspects of bringing or defending a claim at an employment tribunal.
Preparing Financially for an Employment Tribunal
Preparing for an employment tribunal can be daunting, especially when it comes to managing the financial side. Careful planning and budgeting will help you avoid unexpected expenses and make informed decisions throughout the process.
Budgeting for Tribunal Costs
Although there are generally no fees for making a claim to an employment tribunal, you may still face costs such as legal advice, representation, travel, and potential loss of earnings if you need to take time off work. Start by listing all possible expenses, including:
- Legal advice or solicitor’s fees (if you choose to use one)
- Costs for gathering evidence, such as medical reports or expert witnesses
- Travel and accommodation (if the tribunal is far from home)
- Printing and copying documents
- Compensation for lost income if you attend hearings during work hours
Setting a realistic budget helps you understand what you can afford and whether you may need financial support. For a broader overview of court-related expenses, see Understanding Court Costs, Fees, and Funding.
Seek Early Legal Advice
Getting advice from a legal professional early on can help you understand the likely costs involved in your case. Many solicitors offer a free initial consultation or fixed-fee services. Early advice can clarify whether your case is strong enough to proceed, what evidence you’ll need, and what costs you may incur. It can also help you avoid unnecessary expenses by focusing your efforts on the most important aspects of your claim.
To learn more about the process of making a claim and the associated costs, read our guide on How to File Your Case with the Employment Tribunal. You can also access the official Form ET1: Claim form for an Employment Tribunal, which you’ll need if you decide to move forward.
Consider Alternative Dispute Resolution
Before committing to a tribunal, consider whether your dispute could be resolved through alternative dispute resolution (ADR), such as mediation or early conciliation. These methods are often quicker, less stressful, and less expensive than a full tribunal hearing. In fact, you are required to notify Acas (the Advisory, Conciliation and Arbitration Service) before making most claims. Acas offers a free early conciliation service, giving you and your employer a chance to settle the dispute without going to tribunal.
For more on the steps to take before making a claim, including the role of Acas and early conciliation, see How to Prepare for an Employment Tribunal.
Plan for Different Outcomes
It’s important to understand the risks and potential outcomes of your case. While each party generally pays their own costs, the tribunal can order one side to pay the other’s costs in certain circumstances – for example, if a claim or defence is found to be unreasonable or vexatious. Assessing your chances of success will help you weigh the potential risks and rewards. Our guide on Understanding Your Chances of Success at Employment Tribunal can help you make an informed decision.
Practical Steps for Financial Preparation
- Collect quotes from solicitors or advisers for representation or advice.
- Keep records of all expenses related to your claim.
- Check if you have legal expenses insurance (sometimes included in home or car insurance policies).
- Explore free or low-cost advice from organisations such as Citizens Advice or trade unions.
- Plan for the possibility of settlement, which may avoid the need for a hearing and reduce costs.
By taking these steps and using the resources available, you’ll be better equipped to manage the financial aspects of your employment tribunal case. Planning ahead not only reduces stress but also gives you the confidence to pursue or defend your claim effectively.
Related Topics and Further Reading
Understanding employment tribunal costs is just one part of preparing for your case. To help you build a stronger claim or defence, it’s important to be aware of related steps and common issues that can arise during the tribunal process.
One key aspect is handling evidence properly. Failing to share relevant documents with the other side can not only weaken your case but may also lead to additional costs or even sanctions from the tribunal. To learn more about why document sharing matters and what can happen if you don’t follow the rules, see our guide on the Impact of Not Disclosing Documents in Employment Tribunals.
Another crucial element is preparing your witness statement. A clear, well-structured statement can make a significant difference to your case, helping the tribunal understand your side of the story and potentially influencing the outcome (and any related costs). For step-by-step advice on this, read Writing Your Employment Tribunal Witness Statement.
If you’re interested in how costs and procedures work in other types of tribunals, or if you want to understand your rights in similar legal situations, you may find it helpful to explore What to Expect at a PIP Tribunal Hearing: Your Rights and Next Steps. This can give you a broader view of tribunal processes and what support may be available.
Taking the time to understand each stage of the employment tribunal process – including document disclosure, witness statements, and related procedures – can help you avoid unexpected costs and put you in a stronger position, whatever the outcome.